Question 1

Regarding the manufacturers' market, large firms (with more than 250 employees)

Accepted Answer

In the United States, only about 3 percent of all manufacturing plants have 250 or more employees, yet they employ about 44 percent of the production workers and produce about 58 percent of the value added by manufacturers. Exhibit 6-8 presents data on size distribution of manufacturing establishments in the United States.

Question 2

A catalog merchant wants to build a new distribution center that will improve inventory management, storage of products, shipping, and returns. The company develops a close relationship with UPS, its main supplier of shipping services. UPS helps the catalog merchant design its new distribution center so that it coordinates well with the shipping processes at UPS. This arrangement reduces shipping costs and improves service to the catalog merchant's customers. This situation is an example of:

Accepted Answer

As the two companies work in close cooperation with each other this situation is an example of relationship-specific adaptations. Relationship-specific adaptations involve changes in a firm's product or procedures that are unique to the needs or capabilities of a relationship partner.

Question 3

Today, when a buyer can't specify all of the details of what it will need in the future, the relationship with a supplier is most likely to involve:

Accepted Answer

When a buyer can't specify all of the details of what it will need in the future, the relationship with a supplier is most likely to involve negotiated contracts.

Question 4

Which of the following statements about manufacturers is true?

Accepted Answer

Internationally, industrial customers are concentrated in countries that are at the more advanced stages of economic development.

Question 5

Which of the following tips would help marketers find new B2B clients that are similar to clients they already serve?

Accepted Answer

Marketers can find firms that are similar to current B2B-market clients by looking up current customers' NAICS codes and then studying NAICS-coded lists for related firms.

Question 6

_____ refers to reliably getting products there exactly before the customer needs them.

Accepted Answer

Just-in-time delivery means reliably getting products there just before the customer needs them.

Question 7

When referencing NAICS codes, marketers should know that:

Accepted Answer

NAICS codes help categorize all types of businesses and begin by listing general industry categories, which are marked by two-digit codes. Subcategories of those top-level groupings then receive codes of three or more digits, signifying greater detail about the products and services offered by firms.

Question 8

Chu's Coating Services, a painting company, designs a set of four paint colors that will only be used by custom motorcycle maker Walker County Choppers. This decision is an example of

Accepted Answer

Chu's Coating Services is providing customized services to Walker County Choppers, which is a relationship-specific adaptation. Relationship-specific adaptations involve changes in a firm's product or procedures that are unique to the needs or capabilities of a relationship partner.

Question 9

When a large aircraft manufacturer like Boeing obtains a contract to build a new type of jet airliner, this transaction is most likely a(n):

Accepted Answer

The transaction is a negotiated contract buy as the contract is likely to contain only the general project and basic price details with provision for changes as the job progresses.

Question 10

When a purchasing manager knows roughly what is needed but can't describe it exactly-or when the purchasing arrangement may change as the job progresses-then buying is likely to be by:

Accepted Answer

Negotiated contract buying means agreeing to contracts that allow for changes in the purchase arrangements. In such cases, the general project and basic price is described but with provision for changes and price adjustments as the job progresses.

Question 11

Specific adaptations are usually required when a buyer chooses _____, which is a contract with an external firm to produce goods or services rather than the buyer producing them internally.

Accepted Answer

Specific adaptations are usually made when the buying organization chooses to outsource-contract with an outside firm to produce goods or services rather than to produce them internally.

Question 12

Organizational buyers purchase the same product from more than one source

Accepted Answer

Buyers often look for several dependable sources of supply to ensure continued supplies and also to protect themselves from unpredictable events.

Question 13

Regarding the business (manufacturing) market, small firms (with fewer than 10 employees)

Accepted Answer

In the United States, there are about 330,000 factories. Majority of these are quite small-over half have less than 10 workers. But output from these small firms accounts for less than 3 percent of manufacturing value.

Question 14

Regarding the market composed of manufacturers in the United States:

Accepted Answer

Within a country, there is often concentration of manufacturing in specific areas. In the United States, many factories are concentrated in big metropolitan areas-especially in New York, Pennsylvania, Ohio, Illinois, Texas, and California.

Question 15

Which of the following is not a key variable that marketers need to consider when developing marketing mixes for manufacturers?

Accepted Answer

To help develop effective marketing mixes, marketers should pay close attention to the size, geographic locations, buying procedures, and types of manufacturers.

Question 16

Regarding the size of manufacturing concerns, large firms (with more than 250 employees)

Accepted Answer

In the United States, only about 3 percent of all manufacturing plants have 250 or more employees, yet they employ about 44 percent of the production workers. Exhibit 6-8 presents data on size distribution of manufacturing establishments in the United States.

Question 17

Creative Electronics has an idea for a new MP3 accessory. Now it is looking for a supplier to design and manufacture the product. It will most likely use ______________ buying.

Accepted Answer

Creative Electronics only has an idea for a new MP3 accessory and not a detailed description of it. So, it is most likely to use negotiated contract buying. Negotiated contract buying means agreeing to contracts that allow for changes in the purchase arrangements.

Question 18

Which of the following statements about manufacturers is true?

Accepted Answer

Marketers often segment industrial markets on the basis of customer size because large firms do so much of the buying.

Question 19

All of the following statements about manufacturers are accurate except:

Accepted Answer

While it is true that the number of people employed in manufacturing has been shrinking, U.S. manufacturing output is higher than at any other time in the nation's history.

Question 20

Rico Paving Contractors enters into a contract with Valley Supply for the purchase of 100 bags of cement per week for the next 16 weeks at a price of $15 per bag. The contract also includes a condition that allows prices to be revised if costs go up more than $1 per bag. This purchase involves

Accepted Answer

This purchase involves negotiated contract buying as the contract includes a provision for price changes over a specific period of time. Negotiated contract buying means agreeing to contracts that allow for changes in the purchase arrangements.

Quiz 6: Business and Organizational Customers and Their Buying Behavior

Regarding the manufacturers' market, large firms (with more than 250 employees)

Today, when a buyer can't specify all of the details of what it will need in the future, the relationship with a supplier is most likely to involve:

Which of the following statements about manufacturers is true?

Which of the following tips would help marketers find new B2B clients that are similar to clients they already serve?

_____ refers to reliably getting products there exactly before the customer needs them.

When referencing NAICS codes, marketers should know that:

Chu's Coating Services, a painting company, designs a set of four paint colors that will only be used by custom motorcycle maker Walker County Choppers. This decision is an example of

When a large aircraft manufacturer like Boeing obtains a contract to build a new type of jet airliner, this transaction is most likely a(n) :

When a purchasing manager knows roughly what is needed but can't describe it exactly-or when the purchasing arrangement may change as the job progresses-then buying is likely to be by:

Specific adaptations are usually required when a buyer chooses _____, which is a contract with an external firm to produce goods or services rather than the buyer producing them internally.

Organizational buyers purchase the same product from more than one source

Regarding the business (manufacturing) market, small firms (with fewer than 10 employees)

Regarding the market composed of manufacturers in the United States:

Which of the following is not a key variable that marketers need to consider when developing marketing mixes for manufacturers?

Regarding the size of manufacturing concerns, large firms (with more than 250 employees)

Creative Electronics has an idea for a new MP3 accessory. Now it is looking for a supplier to design and manufacture the product. It will most likely use ______________ buying.

Which of the following statements about manufacturers is true?

All of the following statements about manufacturers are accurate except:

Rico Paving Contractors enters into a contract with Valley Supply for the purchase of 100 bags of cement per week for the next 16 weeks at a price of $15 per bag. The contract also includes a condition that allows prices to be revised if costs go up more than $1 per bag. This purchase involves